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Energy Ministry Eyes $35 Billion Investment to Expand Electricity Network

Bambang Ismoyo
May 30, 2025 | 6:00 pm
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A PLN technician from Gorontalo repairs a damaged power line on a street in Palu, Central Sulawesi. (Antara Photo/Basri Marzuki)
A PLN technician from Gorontalo repairs a damaged power line on a street in Palu, Central Sulawesi. (Antara Photo/Basri Marzuki)

Jakarta. The Energy and Mineral Resources Ministry (ESDM) announced a major initiative to develop electricity infrastructure reaching even the most remote areas of Indonesia. Over the next decade, the government plans to build a transmission network totaling 47,758 kilometers of circuit.

Minister Bahlil Lahadalia explained that this transmission network will connect renewable energy power plants to substations owned by the state electricity company, Perusahaan Listrik Negara (PLN), which will then distribute power to customers.

This “Green Enabling Supergrid” plan is detailed in PLN’s 2025–2034 Electricity Supply Business Plan (RUPTL), aiming to facilitate the interconnection of renewable energy sources directly to households across the archipelago. Under the plan, PLN aims to construct about 63,000 kilometers of transmission lines by 2040, with 48,000 kilometers targeted for completion by 2034.

The ministry targets renewable energy to make up 23 percent of the national electricity mix, up from the current 15 percent.

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“To connect renewable energy, we must have a network. Our target for renewables is 23 percent, but currently, it is only 15-16 percent. We have programs for renewable energy, but the network has been lacking,” Bahlil said on Friday.

Among the planned transmission developments, the Java, Madura, and Bali regions will see the longest stretches of network expansion.

Bahlil also stressed the significant investment opportunities from the project, estimating a total of Rp565.3 trillion ($34.67 billion). The project is expected to create 881,132 jobs across manufacturing, construction, operations, maintenance, and distribution sectors.

To boost the economy and create jobs, the minister emphasized maximizing the use of domestic content (Tingkat Kandungan Dalam Negeri, TKDN) in the development of transmission lines and substations, aiming to minimize imports.

“I hope there will be no imports. All domestic industries should be maximized,” Bahlil concluded.

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